SAIL reports 12 per cent growth in May steel sales

Public sector steel producer Steel Authority of India Ltd (SAIL) Tuesday reported a 12 per cent increase in its domestic sales to about a million tonnes in May over the year-ago period.

''In May 2009, Steel Authority of India Ltd recorded best-ever monthly sales in the domestic market of about one million tonnes, which is higher by 12 per cent over May 2008," the company said in a statement.

At about 1.9 million tonnes for the first two months of the current fiscal (april-May 2009) SAIL said its domestic sales is 21 per cent higher than in the same period last year.

SAIL said its production of saleable steel has grown by 5 per cent to 1.1 million tonnes in May against the corresponding period last year.

Production of special steel items and high value-added products went up by 12 per cent to about 4 lakh tonnes during the month, the statement said.

SAIL recorded a profit (after tax) of Rs1,486.68 crore during Q4 of financial year 2008-09, in spite of the economic meltdown and rise in input costs. The profitability of the company during Q4 was 76 per cent higher than the PAT in Q3 – though lower by 37 per cent compared to the corresponding period of last year.

Turnover in Q4 at Rs13,008 crore, EBDITA at Rs2,658 crore and PBT at Rs2,287 crore were lower by 16.2 per cent, 34.1 per cent and 37.6 per cent respectively over Q4 of 2007-08 but higher by 30.8 per cent, 57.8 per cent and 81.9 per cent over Q3 of 2008-09, respectively.

Owing to improvement in domestic market conditions, domestic sales during Q4 bounced back – it was 50 per cent higher as compared to Q3 of FY '09 -  leading to significant reduction in stocks. Overall inventory of semis and finished steel and raw materials was brought down by about Rs2,800 crore during the quarter, SAIL said while announcing the results for 2008-09.